As a responsible driver, you know how important it is to carry adequate car insurance. However, that does not mean you are happy with what you're paying for your premiums. Car insurance companies look at a variety of factors when determining how much to charge someone for insurance. Some of the factors are within your control and some of them are not.
Here are several factors that can affect your insurance rates.
1. Driving Record
Car insurance companies will look at your driving record before giving you a quote. If you have multiple speeding tickets or accidents on your driving record, your insurer may charge you a higher rate. They believe that drivers with poor driving records are at a higher risk. If you take a defensive driving course, you could shave some points off your record.
2. Credit Rating
Believe it or not, insurance companies also consider your credit score. They assume that people with low credit scores are more likely to file claims. If you currently have a low credit score, take steps to improve it, like paying your bills on time and keeping your credit card balances low.
3. Yearly Mileage
The number of miles you drive every year is taken into consideration. Generally, the more miles you drive, the more likely you are to get into an accident. If your mileage ever goes down, you should inform your insurance company.
Where you live is another factor car insurance companies consider when determining your rates. For example, if you live in a city with a high rate of stolen cars or vandalism, your insurance company may charge you higher rates to protect themselves.
Auto insurance companies typically look at a person's profession before providing a quote. For example, police officers, insurance underwriters and paramedics, may get a cheaper rate because they are usually more cautious than the average driver.
6. Claim History
Before giving you a quote, an auto insurance company will look at how many claims you have made with other insurers in the past few years. If you have made multiple claims, the insurance company may think that you are high risk and charge you more for premiums.
As you can see, many factors could influence how much you pay for car insurance. If you believe you are paying too much for your premiums right now, ask your insurance agent how to lower your rates.